The economic dynamism, which is the index of productive growth (in dollars) for countries that are designated by the World Bank as middle-income are in following table ("SOCR data 2008," 2013).
Question
The economic dynamism, which is the index of productive growth in dollars for countries that are designated by the World Bank as middle-income are in table provided below ("SOCR data 2008," 2013). Countries that are considered high-income have a mean economic dynamism of 60.29. Do the data show that the mean economic dynamism of middle-income countries is less than the mean for high-income countries? Test at the 5% level.
Economic Dynamism of Middle Income Countries
25.8057 |
37.4511 |
51.915 |
43.6952 |
47.8506 |
43.7178 |
58.0767 |
41.1648 |
38.0793 |
37.7251 |
39.6553 |
42.0265 |
48.6159 |
43.8555 |
49.1361 |
61.9281 |
41.9543 |
44.9346 |
46.0521 |
48.3652 |
43.6252 |
50.9866 |
59.1724 |
39.6282 |
33.6074 |
21.6643 |
What is the appropriate test for this case?
What is the null hypothesis?
What is the alternative hypothesis?
Determine if this test is left-tailed, right-tailed, or two-tailed.
What is the significance level?
What is the test statistic?
What is the p-value?
Do we reject the null hypothesis?
What is the conclusion?
What is 95% confidence interval for the population mean?
Interpret the confidence interval.
Answer
Claim: Mean economic dynamism of middle-income countries is less than 60.29
The sample size = 26
Since the population standard deviation is not known
We use the one sample mean T test for this scenario
Null Hypothesis: Mean economic dynamism = 60.29
Ho: M = 60.29
Alternate hypothesis: Mean economic dynamism < 60.29
Ha: M < 60.29
It is a left tailed test because the alternate hypothesis contains the “less than < “ symbol
Given: significance level = 5% or 0.05
.
For test statistic the formula:
T = (x bar – M) / ( s / sqrt( n))
.
Where x bar = sample mean = 43.87
M = population mean = 60.29
S = sample standard deviation = 9.07
N = sample size = 26
.
On plugging these values we get:
T = (43.87 – 60.29) / (9.07 /sqrt(26))
T = -9.23
.
Df = n -1
Df = 26-1 = 25
P value for T = -9.23 , df = 25 and left tailed test is 0.000
Since the P value 0.000 < alpha 0.05 , we reject the null
Thus we conclude that the mean value is than 60.29 , and conclude that there is sufficient evidence t support the claim that mean economic dynamism of middle-income countries is less than the mean of high-income countries.
.
For confidence interval the formula is:
X bar – t* s/sqrt( n) , x bar + t * s/ sqrt(n)
.
T critical for 95% confidence level df = 25 can be obtained from the T table
We get: T = 2.060
On plugging all the values we get:
43.87 -2.060 * 9.07/sqrt(26) , 43.87 +2.060 *9.07 /sqrt(26)
40.2057, 47.5343
.
Interpretation: There is 95% of the chance that the mean value will lie in the range of (40.2057, 47.5343). Since the value 60.29 does not fall in this interval and the upper limit of the interval is less than 60.29 we conclude that the mean of the middle income countries is less than 60.29
The economic dynamism, which is the index of productive growth (in dollars) for countries that are...
7.3.6 The economic dynamism, which is the index of productive growth in dollars for countries that are designated by the World Bank as middle-income are in table #7.3.8 ("SOCR data 2008," 2013). Countries that are considered high-income have a mean economic dynamism of 60.29. Do the data show that the mean economic dynamism of middle-income countries is less than the mean for high-income countries? Test at the 5% level.
Econ growth Of the seven methods listed to improve economic growth, which do you believe is the most effective in helping low-income countries grow into middle-income countries?
1. Economic growth around the world 1. Economic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Zambia was $1,412 in 1960, and it actually declined to $1,309 by 2010, Zambia's average annual growth rate during this period was-0.15%, and it was the poorest economy in the table...
Is economic growth in the developing world related to growth in the industrialized? countries? The output of a regression analysis that related growth? (in % of Gross Domestic? Product) of the developing countries to the growth of developed countries from 1970 to 2007 is given below. Complete parts a through f. LOADING... Click the icon to view the regression analysis. ? Dependent? variable: Growth Developing Countries Rsquared2equals=20.8320.83?% Variable Coefficient Intercept 3.593.59 Growth Developed Countries 0.405 a) Write the equation of...
Does economic growth always bring economic development? Name some of the countries which grow without development? What are the common characteristic(s) of these countries?
Question 18 (Ch21&22) Which countries have experienced faster economic growth? 1. A) Countries that have been generally more open to foreign trade and investment. 2. B) Countries that relied less on foreign trade and more on their own internal sources of saving and investment. 3. C) Countries that focused on job preservation. 4.D) Countries that avoided globalization. Question 19 (Ch21&22) Why has productivity growth in the U.S. been more rapid than in the other industrialized countries? A) Because of the...
Post-World War II, worldwide economic growth was in strong evidence and countries that were once classified as less developed were reclassified as Multiple Choice newly industrialized countries. O tier-Il countries O free trade economies. O O developed countries.
which of the following about economic growth is true? a. that developed nations are growing rapidly and the less developed nations or stagnating b. most of the countries that have achieved the highest growth rates in the world during the last quarter of a century were classified as LDCs in 1980 c. it is an oversimplification to divide the world into the growing, developed nations in the stagnating, less developed nations d. both B and C are true e. all...
The following table lists gross domestic product (GDP) and approximate population for four countries in 2013. Note that GDP is given in millions of U.S dollars (USD). For example, a value of 16,800,000 suggests that U.S. GDP was approximately $16.8 trillion in 2013. GDP per capita, however, is simply given in dollars (USD) Calculate GDP per capita for each country and enter it in the fourth column of the table GDP per capita (USD) GDP France Liberia India United States...
Identify whether the given statements about climate change and economic growth are true or false by dragging and dropping the relevant word into the bins provided. Poorer countries have historically been responsible for the bulk of world carbon Trhe emissions because of poor technology and environmental regulations. Air and water quality in developed countries is generally much better todayTrue than it was several decades ago. Tackling climate change issues is likely to only modestly dent long-term economic growth. Carbon emissions...